Dow Drops More Than 300 Points as Markets Go Into a Tailspin

[Purveyor]

Source: NBC NEWS

The benchmark Dow Jones Industrial Average dropped more than 300 points Thursday, continuing a three-day streak of triple-digit swings that has investors' heads spinning. Thursday's fall was sparked by concerns over global economic growth after Germany reported that exports dropped 5.8 percent in August. It was the biggest decline in exports from Europe's largest economy since January 2009.

"Right now, one of the main preoccupations investors have is what's going on in the international economy," said Bernard Baumohl, managing director at the Economic Outlook Group in Princeton, New Jersey. Worries about the ability of governments to control the Ebola virus and a decline in oil prices also weighed on investors. The market's so-called anxiety gauge, the CBOE Volatility Index, rose about 25 percent to 18.97. The Dow unofficially closed down almost 2 percent. It was the third straight session that the index moved up or down 200-plus points. That hasn't happened since August 2011, when it had four straight such moves.

Read more: http://www.nbcnews.com/business/markets/dow-drops-more-300-points-markets-go-tailspin-n222181

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Investor Icahn Sees Stock Market Correction Coming

By Reuters | Thu, 9th October 2014 - 19:18

By Svea Herbst-Bayliss and Sam Forgione

(Reuters) - Billionaire investor Carl Icahn said on Thursday a stock market correction is "definitely coming" and he is worried about the economy, as U.S. stocks tumbled on fresh worries about global growth.

Icahn told CNBC in an interview that he still has a lot of money invested in the stock market and has taken measures to protect his portfolio.

"I've been putting on quite a bit of hedges," Icahn said, adding that he was shorting the benchmark Standard & Poor's 500 <.SPX> stock index, which was down 1.77 percent.

more...

http://www.iii.co.uk/news-opinion/reuters/news/197368

[Warpy]

1. Sic transit glorious money

It was nice having the illusion of being rich for a few months.

I love the way financial news is overstated. Dropping 1000 points a day would be a tailspin. This is just a correction in an overheated market.

[Andy823]

5. I agree

This has a lot to do with big investors taking profits after a good run, and after the elections they will be back buying up all the stocks they can at rock bottom prices. I am also sure that these market swings have some politics added in. The record highs on wall street don't really help republican much, but a "tailspin" can be used to tray and blame it all on "OBAMA" and the democrats.

[Warpy]

9. Well, it's not going to work because fewer and fewer people are in the market

because they've been priced out or aren't covered by 401K plans. What the stock market does is completely irrelevant to most working people. Besides, anyone who's watched the market for any length of time knows the fall, especially October, can be brutal.

If they really want things in this country to go back to a boom instead of a bunch of games with money to fatten rich people, they need to raise wages.

[arcane1]

2. "Correction." You gotta love their language, anyway.

[brooklynite]

3. Apple was up...

My shares have appreciated about 15,000% since I bought them.

[yeoman6987]

26. That is great news! I love a DUer success story

I am staying put for now. My savings account has never had more money in it then it currently has. I knew a correction was coming so I have only been putting money into the 401k and my monthly automatic buys through the "DRIP" program. But that is only around 500 a month. The rest I have been stocking in savings until the correction happens. Can't wait to get my money working. It is embarrassing what the bank interest pays.

[jwirr]

4. May have something to do with the report that Germany is on the edge of a recession.

[Purveyor]

6. Indeed. How's those sanctions 'working out', eh?

[Blue_Tires]

19. Germany is under sanction?

[mrdmk]

20. Russia and Germany are trading partners

There is a contraction for the up-coming month in the forecast for Germany's economy. The next month it will be back up.

It takes three consecutive months of negative growth for a recession to occur. Still not good...

[Blue_Tires]

23. oh...Well Russia's sanctions are well-earned

Germany just needs to make up the lost trade with someone else...

[Calista241]

29. Should they snap their fingers when they do that? Maybe make a wish upon a star?

[Bosonic]

21. Brutally

The Russian Ruble Is Collapsing

[amandabeech]

22. Even if sanctions are lifted or lightened, Russia will still be in trouble financially.

Putin needs oil at $100 or higher, and the European benchmark Brent crude closed around $90 today.

The only that looks like it would chase oil higher is an Isil takeover of the southern Iraqi oil fields, and that does not appear likely.

Germany and the rest of Europe may be hurting, but may be hurting more.

[tabasco]

24. According to the Poooty Poot Fan Club

this is all really wonderful and a brilliant move by Pooty Poot!

[yeoman6987]

27. Impossible! They are giving away free education.

You don't do programs like that right in time for a recession.

[closeupready]

7. October has always been a bad month. The biggest crashes ever

all happened in October. So there may be little foundation for this downswing other than the time of year.

[JoePhilly]

8. Its the start of the double dip recession that many on DU predicted ...

... back in 2009, 2010, and 2011.

[SleeplessinSoCal]

10. Just got my IRA statement Tuesday doubling my initial investment

And we have no idea where it will be when it's time to cash it in. Makes me a nervous wreck.

How in hell do investors not go insane?

[yeoman6987]

28. Investing is long term

I started in 1987 with 400 dollars. It was high school graduation money. October 1987, it went down to 5 cents. Well not that low but it was ugly, but I continued to put 50 dollars a month in and before you knew it. I had some real money. Today I have 6 individual stocks, 5 mutual funds, 401K, thrift saving, ROTH iRA. And I have NEVER sold a penny even in the worst times. I just keep buying. I am 45 and hopefully will not touch it for another 30 years at least. Even if the day I retire I lose 50 percent, I am still better off then not having it.

[AngryOldDem]

30. Mine dropped about two grand over the last period.

I wasn't too surprised, given the recent volatility. That's how I stay sane. I watch the stocks just enough to get an idea what my balances will be when I get my statement. I do have my investments analyzed every so often and make adjustments accordingly. I manage my end of the risk. After that, it's out of my hands. I have no illusions about a comfortable retirement anyway.

[librechik]

11. Is this another one of those things where they put a woman in charge just in time

to take the blame and handle the coverup? They're getting a little obvious...

[SoapBox]

15. (That Avatar is hilarious!) EOM

[SheilaT]

12. Wow, a two percent drop.

How huge is that!

Markets go up, markets go down. It's as simple as that.

And yes, it worries me a little to see the dollar amount my investments have lost, but we're still talking very little in percentage.

[louis-t]

13. What did they call 1,000 point swings in one day under bush?

[Purveyor]

16. Here's a few headlines for your viewing pleasure...

[SoapBox]

14. Shouldn't that one title have said...

"Blood Sucking, Vulture Capitalist Ichan, can hardly wait to drain more money from millions of Americans and businesses, pushing them into bankruptcy"

[edhopper]

17. They are doing it too soon

should be the week before the election for it to work.




yes I am joking, not that rethugs are beyond tanking the economy to win.

[DallasNE]

18. More Knee-Jerk Reactions

No details on the German export pull-back. While the top number does look bad one needs to drill down and isolate the problem area. If it is across the board then it would indeed be bad but if much of it is a statistical aberration then not so bad.

Then Icahn is all over the board. First he says he expects a pullback then urges Apple to buy back shares. You do a stock buy back when you think your stock is undervalued, not overvalued. Duh. Is he getting senile?

[Supersedeas]

25. the natives are getting restless

[yellowcanine]

31. Staying put. Probably 7 years before I START withdrawing and I am going to hang tight at least

until then and then maybe do some restructuring but I still expect to keep a significant portion (40-50%) in equities.